Rules Preventing International Bail Outs Important for Euro Zone, Says ECB’s Stark

(CEP News) Frankfurt - European Central Bank Executive Board member Jürgen Stark says that rules preventing euro zone members from taking on the liability of the debt from others is an “important foundation” of the monetary union, Der Spiegel reported on Friday.

According to the German magazine, the central banker also dismissed talk of the euro zone breaking up.

“If federal states in the U.S. were close to insolvency, nobody would doubt the survival of the dollar,” Stark was quoted as saying.

Stark also said that if member states chose to leave the monetary union, they would likely see their financial problems “significantly” aggravated.

Written by CEP News European Staff, eunews@economicnews.ca, edited by Stephen Huebl, shuebl@economicnews.ca

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Posted in Categories: Economy, Eurozone, Releases, USA.

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